Overview

Amazon has added a mandatory reference‑price rule for all Prime Exclusive Discount (PED) offers. Effective immediately, a visible “was” or list price must accompany every PED, and the discount must be at least 5 % off that reference price on ordinary days and 10 % off during major sales events such as Prime Day, Black Friday, and Cyber Monday. Sellers who do not meet these thresholds risk having their PEDs removed or their listings suppressed.

Key Points

• Reference price required — Every PED must show a clear reference price, whether it is a manufacturer’s suggested retail price (MSRP), a “was” price, or another list price that Amazon deems appropriate.
• 5 % minimum discount on regular days — The PED price must be at least 5 % lower than the displayed reference price during non‑event periods. For example, a product with a $80 reference price must be offered at $76 or less to qualify.
• 10 % minimum discount on major events — During Prime Day, Black Friday, Cyber Monday, and similar high‑traffic events, the discount must reach a minimum of 10 % below the reference price. A $120 reference price therefore requires a PED price of $108 or lower.
• Amazon selects the reference price — Amazon’s pricing algorithms automatically choose which reference price to display, based on factors such as historical pricing, competitor listings, and the seller’s own list price. If the algorithm detects an inaccurate or inflated list price, it may replace it with a more realistic figure.
• Compliance measured against displayed price — The discount percentage is calculated from the reference price that Amazon actually shows to shoppers, not necessarily the list price the seller entered in the backend. This means a seller’s intended 5 % discount could be interpreted as a smaller discount if Amazon displays a lower reference price.

How the Reference‑Price Requirement Works

1. Reference price identification — When a seller creates or updates a PED, Amazon scans the product’s catalog for any existing list price, “was” price, or MSRP. If the seller has entered a list price of $50, but Amazon’s algorithm finds a recent competitor price of $45, Amazon may display $45 as the reference price. : A kitchen gadget listed with a $50 MSRP is shown with a $45 reference price because a competitor’s recent sale price is lower.